many turks had high hopes that the turkish central bank would raise interest rates to shore up the lira the country eagerly awaited the meeting of the turkish monetary authorities on thursday shortly before president everyone had demanded exactly the opposite he called on the monetary authorities to lower interest rates he also accused them of ignoring the interaction between interest rates and inflation. all my oil anyone who says inflation is the cause interest is three zulfi does not know his way around this business because. but the central bankers resisted the president and raised the key interest rate significantly by more than six percent the effect began immediately to exchange delirious for dollars got a slightly better exchange rate in the afternoon. the central bank's interest rate decision immediately boosted the euro by five percent. and i could bond with that you could rule the central bank is an independent institution and it did what it had to do. because the turkish lira lost so much against the dollar the measures had to be taken but also and i think with this increase

i also have the turkish lira, also oil prices.ing themselves whether anybody in the oil industry is going to fill the hole.n-shaped the ftse move is underperforming today. that is also topical. tom: with these headlines flooding out, mr. erdogan says turkey will shell some investments in product. let's look at the theme of lehman tenures out in banking. i was surprised at the c hart. here are some of the lehman lows of 2009. remarkable to see jpmorgan launching. i did not the rbs said. . -- up here. i have been talking about bank capital this morning. that is what i am focused on. hadley been regulating in the last crisis instead of the one to come? it is day four of bloomberg's coverage of the lehman brothers collapse. now, we turn our focus to the effects of the meltdown. some of theneup of world's most influential voices sharing what they learned. if the funding disappears, that could happen to other institutions as well. then, you realize how interconnected we were in the financial system. learn thatwe can all things are much

price as a climbing because the turkish lira has lost so much value against the dollar in the first half of this year it plummeted by a stunning seventy two percent. south africa's economy is also stuttering that country's currency the rand has lost a full thirty percent against the dollar south africa is now considered just being in recession following two quarters of falling g.d.p. . india is also not fairing too well right now the rupee has lost ten percent against the dollar since march this year but argentina's been the worst hit so far austerity measures have unleashed wave upon wave of anti-government demonstrations the unions take to the streets of when a star is on an almost daily basis argentina's paizo has lost eighty six percent in value against the dollar over the last six months. and we're joined now by a holocaust meeting chief economist at bear in bag bank good to have you with us today took us through the turmoil that we're seeing in emerging markets firstly what is driving this crisis. there are two things that are driving this crisis the first is that many emerging mar

many troops had high hopes that the turkish central bank would raise interest rates to shore up the liracountry eagerly awaited the meeting of the turkish monetary authorities on thursday shortly before president everyone had demanded exactly the opposite he called on the monetary authorities to lower interest rates he also accused them of ignoring the interaction between interest rates and inflation. all my own anyone who says inflation is the cause interest is the result does not know his way around this business because. but the central bankers resisted the president and raised the key interest rate significantly by more than six percent the effect began immediately turks who exchanged liras for dollars got a slightly better exchange rate in the afternoon. the central bank's interest rate decision immediately boosted the euro by five percent. and i could be cruel the central bank is an independent institution and it did what it had to do. because the turkish lira lost so much against the dollar that the measures had to be taken but also and i think with this increase in interest rates

thecine: how do you find turkish lira?he ruling class accept they could going to recession? prof. roubini: first of all, inflation will go higher given the depreciation. even tightening will need to be done. the main imbalances are not on monetary side but fiscal and credit. they promised fiscal tightening and it has not occurred. politically, for them accepting a recession will be painful, and they will try to kick the can down the road at least until march with the election. even if it has fallen significantly, it could fall more if inflation gets higher. tom: i want to talk about this because people say what is the big deal with nouriel roubini? to 2005 in 2007, this is a fancy physics question which is a sine wave function. what nouriel roubini is famous for is this right here, the amplitude of a given wave. this goes back to 2006, which was the amplitude of the crisis that everybody underestimated. is that where we are right now, where we don't understand amplitudes of turkey to amplitudes of argentina or frankly the

now a trade just feuds with the united states has been undercutting an already weakened turkish lira which means everyday items are more expensive in turkey last month prices rose by almost eighteen percent is the highest inflation in more than fifteen years so turks are forced to pay more for everything from groceries to gas to electricity also for the magazines they read publishes are barely getting by. on is one of turkey's old a satirical magazines and it's got a problem it's been shrinking not its staff but the size of the paper itself. most paper stock is imported to turkey the lear is down seventy two percent against the dollar in the last six months making it much more expensive publishers are forced to cut back. last week it was a quarter of its normal size this week it will back up to a half uncertainty now hangs over the publication. this industry is dependent upon imports these costs are excruciating besides even if you can't come up with the money paper suppliers are not eager to take the papers out of their storage because it's not clear what the price will be in two ho

bring what the markets expected to get to while the finance minister were was giving his speech turkish lira gained value against us dollar but after he finished his the speech the lira started to decline again and what we know from his speech is that turkey is going to continue fight against the high inflation resources which is double digit and the minister said that it is going to be brought down to six per cent he said that turkey will be fighting against security account the physic which is very high because turkey is dependent on energy import which is most of the current to come the facade of the country but of course the other measures that have been announced during the last couple of weeks like banning us dollar from rent contracts and sales contracts for the turkish turkish businessmen i mean these these are a little bit. bringing curiosity and seriousness in the markets but people were expecting a very huge reform programme in the second eva konami plan unfortunately it didn't bring what the markets expected it just repeated the same actions of the previous economic management ok

many turks had high hopes that the turkish central bank would raise interest rates to shore up the lira the country eagerly awaited the meeting of the turkish monetary authorities on thursday shortly before present. heir to one had demanded exactly the opposite he called on the monetary authorities to lower interest rates he also accused them of ignoring the interaction between interest rates and inflation yet. oh my oh anyone who says inflation is the cause interest is three zoeth does not know his way around this business because. but the central bankers resisted the president and raised the key interest rate significantly by more than six percent the effect began immediately exchanged for dollars got a slightly better exchange rate in the afternoon. the central bank's interest rate decision immediately boosted the euro by five percent. and i could be cruel the central bank is an independent institution and it did what it had to do. because the turkish lira lost so much against the dollar the measures had to be taken but also and i think with this increase in interest rates inflation

the turkish lira surged on thursday after the country's central bank raised the key interest rate by more than six percentage points. in a last ditch effort to slow the dramatic descent of the mirror which has plunged more than forty percent against the dollar this year analysts had argued for a drastic rate hike to keep prices from further skyrocketing president. had to post such a move claiming higher rates would worsen the country's economic problems. so turkey's central bank raises interest rates and president out of town doesn't like it here's what he had to say ahead of thursday's decision. is. when you look at interest rates and inflation in terms of cause and effect. fly years interest rates are the cause and inflation is the effect. but if you see inflation as the cause and interest rates are at the effect then my friend you don't know this business. because you can set the interest rates. inflation will still occur just now most economists of course subscribe to the view that higher interest rates are used to curb inflation for more let's bring in correspondent dorian jones

many turks had high hopes that the turkish central bank would raise interest rates to shore up the lira the country eagerly awaited the meeting of the turkish monetary authorities on thursday shortly before president everyone had demanded exactly the opposite he called on the monetary authorities to lower interest rates he also accused them of ignoring the interaction between interest rates and inflation. oh my oh anyone who says inflation is the cause interest is three zulfi does not know his way around this business is good. but the central bankers resisted the president and raised the key interest rate significantly by more than six percent the effect began immediately to exchanged liras for dollars got a slightly better exchange rate in the afternoon. the central bank's interest rate decision immediately boosted the euro by five percent. not get beyond that because of all the central bank is an independent institution and it did what it had to do . because the turkish lira lost so much against the dollar the measures had to be taken but also and i think with this increase in interes

central bank hadn't the price if we increased interest rates and they expect haitian law to the turkish lira would be plummeting again forty possibly another ten or twenty percent given the fact that the current he's already down forty percent the pressure on the turkish economy and the banking system will become acute this is why most people are believing that the president did allow the central bank to hike right now one could argue that this economic crisis has been there all along so what changed now. well i think the big question is going forward is what will the central bank be doing for before there is a vacation the need for further increases in interest rates to defend the current the to drive down inflation which you had some analysts are expecting could hit thirty percent will the title back be allowed to do this by the president is the key question going forward also does he is expected to take all the steps as well now will this move today and potentially further hikes in interest rates will this solve turkey's economic problems. well he not really will be the big question there

the turkish lira surges for the first time in weeks as the country's central bank tries to save a by raising interest rates shah played against president everyone's well. the european central bank scales back its crisis measures taken to the global financial crisis did the e.c.b. really do whatever it. and a bacteria sweep through italian olive groves threatening the industry but a solution may be at hand. i mean physical and let's do business the turkish lira surged to after a decision by the central bank to raise the interest rate i'm holding six percent turkey's financial authorities met today in a last ditch effort to cope the leader is dramatic the center or at least slow it the currency value is plunged by more than forty percent against the dollar this year analysts had argued for a drastic interest rate hike to keep prices from further skyrocketing but turkish president richard tie a better one had opposed such a move claiming higher interest rates would worsen the country's economic problems turkish regulators have also decided to ban all real estate business in foreign curr

i will show turkish lira later on.h everything going on in the central bank they are trying to show their independence. russia's central bank coming out with its rate decision a little later on. after mark carney is said to have talked about the implications of a hard brexit from the eu, the pound not moving that much. bank spun off its asset management unit earlier this year. keep it right here on "bloomberg surveillance." we will be speaking to the chief executive of investec and we will ask him about the spinoff and what clients are asking of them as well. let's get straight to the bloomberg first word news with taylor riggs in new york city. taylor: hurricane florence has hit the north carolina coast. the full effects of the storm are yet to come. sustained hurricane force winds and torrential rain have crashed into waterfront towns, as florence is said to make landfall later today. more than 1000 flights have been canceled and duke energy says 3 million people could lose power. it's estimated that the total bill f

we have seen investor flight from the turkish lira, argentinian peso, and a lot of articles were writtenalking about how this will spread and spread and spread. she talks about the fact that actually she doesn't see contagion spreading the multiple countries beyond those specific ones. is that something you would agree with? yes, and the issue is it is notjust the trade wars. there are local political issues within both argentina and turkey causing problems, and that is especially exacerbated in turkey. and the south african rand, as well. on the safe haven has been us denominated debt, and that means the strength of the us dollar has been massive. and with that strength, againstan massive. and with that strength, against an economy like the turkish lira, that is already struggling, that strength causes such issues. and also the fact that the us are increasing interest rates adds another layer and they are likely to do that in a couple of weeks' time, on 25 september, i believe. let's look at city am now, a free financial paper in london. keep mark carney and carry on. quite a clever hea

the bloomberg intelligence points out the turkish lira has overshot to the downside.loff revealed enough fundamentals. we are talking about a wide range of expectations with the numbers. --politically, who is to turkey reaching out to for political and economic support as this trade war with the u.s. continues? yousef: the situation has deteriorated with the united states. tariffs are in place from both sides. they are not talking much at this point. china.has reached out to they have been talking with russia as another key power. the germans have a very important relationship with turkey. there have been top level conversations about how germany could help turkey in terms of potential investments. and to the top leaders are going to be meeting later on this month to set the stage for further collaboration and the nato alliance continues to come with the united states. the dollar is a big part of the emerging markets story. u.s. currency the could face a crisis in two years from now, dropping as much as 30%. another says he expects the greenback to decline by years en

we are seeing the turkish lira weaker. tting the lira up for a fall if it doesn't deliver the hikes to as much of a degree as the market might expect? >> absolutely. traders in the turkish have swung between hope and despair all along. on one hand, you have this inflation which is proving very aggressive. on the other, the central bank not deal with -- it is not backed by fiscal prudence. , thise making on the 13th is good news of the central bank reacting to the inflation print as being priced into their. the lira is not as weak as it could be so it is entirely possible that on the 13th, people could be disappointed. nejra: language the central bank used was that it would use all tools available. there are several rates the bank could raise but also the way they could self tighten. are there other tools they could use? >> they happen self tightening for -- it is more for probably consumption rather than market consumption. they need to go beyond those tools because they don't have much credibility. they have not been able

precipitated the last leg of this recent turkish lira crash.urkish lira crash. since then it has dropped about 25%. not raising interest rates is not an option. what is forceful enough, thatis option. what is forceful enough, that is the question? they promised something forceful and i would guess the what we are doing, discounting about three point to 5%, but estimates range from 200 to 700. will it solve anything? as long as they meet market expectations it will stem the rot. does it solve the problems? no. there is a problem interference with the central bank from the erdogan government and that turkey is far too reliant on external financing. turkey is far too reliant on externalfinancing. there turkey is far too reliant on external financing. there is turkey is far too reliant on externalfinancing. there is a lot of dollar debt and win their own currency is plunging in meet the debt is escalating. it is in a clinch with the us over a vicar and has now had sanctions applied. none of these problems will be solved by the central bank. and man

price is a climbing because the turkish lira has lost so much value against the dollar in the first half of this year it plummeted by a stunning seventy two percent. south africa's economy is also stuttering that country's currency the rand has lost a full thirty percent against the dollar south africa is now considered as being in recession following two. quarters of falling g.d.p. . india is also not fairing too well right now the rupee has lost ten percent against the dollar since march this year but argentina's been the worst hit so far austerity measures of unleashed wave upon wave of anti-government demonstrations that unions take to the streets of when a czar is on an almost daily basis argentina's paizo has lost eighty six percent in value against the dollar over the last six months. and we're joined now by a holocaust reading chief economist at barron bag bank good to have you with us today took us through the turmoil that we're seeing in emerging markets firstly what is driving this crisis there are two things that are driving this crisis the first is that many emerging markets

on turkey are taking their toll and that their community their fate in the appreciation of the turkish lira and therefore the problem is seen international trade relationships of it then translated into most economy are exhibiting the political and economic situation that the president had to go on is a facing so you know way as we think of a visa visiting germany to me as an international economy is the question comes to mind also following on the previous contribution he may not like that american very much but maybe even accept more than what the current position because of the press then charm but clearly did an issue between. germany turkey in the us not being very warm recently but possibly that our mission in the united states i mean been called there and saw your is that balancing out the politically madame even more so economically on what the president had to go and can try to do in order to try to come out to to sort of of the economic issues vet is facing keeping in mind that they believe that he's also facing a very strong political constrain sinan in istanbul let's just talk s

a couple of weeks ago or possibly not enough for four to counter the effect of the drop in the turkish lira so i don't think of going on some of the comments from earlier that the meeting today is going to bring any direct effect in terms of germany offering to pumping money into the turkish economy or any other that are much solutions from my perspective and this is on the boundary between politics and economics if press the trump was not in the white house i don't think that they have to go on when they've been burning today both for political and economic reasons now presidential easing that white house is doing a massive measures these m b c's of the the gas market and so on that if you want to miss that out of the gun and i'm going to america on the same side in the sense of being pushed by press and charm but i'm very different dimension person charm is impose a sanction on turkey on political grounds or mr trump has imposed. on european union and other countries on economic let's say cards but even if one may want to dispute that these are very different in their ground so is not fai

prices are climbing because the turkish lira has lost so much value against the dollar in the first half of this year it plummeted by a stunning seventy two percent. south africa's economy is also stuttering that country's currency the rand has lost a full thirty percent against the dollar south africa is now considered as being in recession following two quarters of falling g.d.p. . india is also not faring too well. right now the rupee has lost ten percent against the dollar since march this year but argentina's been the worst hit so far sturdy measures of unleashed wave upon wave of anti-government demonstrations that unions take to the streets of pointers ariz on an almost daily basis and seen as paizo has lost eighty six percent in value against the dollar over the last six months. germany's exports has all thriving despite punitive tariffs and other trade barriers new official figures show that in july germany sent one hundred on the eleven billion euros worth of products abroad that was a rise of seven point six percent on the previous year demond was especially strong in european

the turkish lira will remain at the deficiency.ica's rand another vulnerable they ares -- vulnerable to capital outflow. much of this selloff is due to the difference between the global negative, i.e. trade war's and the fed, and how much of it is to do with the idiosyncrasies of individual markets, which is deficits, ease?is about fiscal those are the domestic issues versus the global issues. must i differentiate? i must, surely. week, au look at last lot of the moves were due to local idiosyncrasies like argentina or turkey. if you look at currencies like the south african rand, the worst performing emerging market currency in august after the lira, that is even after a alsot last week saying -- the global backdrop of the trade wars and obviously the rising inflation. a lot of that is driving the dynamics. there are also political uncertainties around land reform, mining regulation, investment, and economic data. it is hard to quantify how much of it is the local doctor. -- backdrop. is weighing on the currencies. manus: thank yo

national currency is going to gain back its confidence its value against the american dollar or not a turkish lira has lost a lot of fairly following the following diplomatic dispute between washington and ankara ford the last couple of months and now everybody is. whether turkish the right is going to gain valley or not but of course the minister try to give the message to the international markets that turkey is a safe haven't they can come and invest in turkey and the curry's see crisis is totally over but of course time will show whether the turkish lira is going to gain back the confidence. canadian government leaders more flexibility from the united states as time runs out to agree to a new trade deal to replace enough to canadian negotiators a being pressured by the trumpet ministration to make concessions if the new agreements to be signed by the end of this month the u.s. presence already agreed with mexico to revise parts of the north american free trade agreement which he says has been a disaster for american jobs nafta is a theory complex agreement which governs the largest trading rel

and the turkish lira has made a major turnaround today surging after a decision by the central bank to braise interest rate by more than six percent so his financial authorities met today in a last ditch effort to pull the lever is dramatic the center or at least to slow it the currency value has plunged more than forty percent against the deal of this year alice to downgrade for a drastic interest rate hike to keep prices from further skyrocketing but turkish president richard type it wanted to post such a move claiming higher interest rates could worsen the country's economic problems turkish regulators have also decided to ban all real estate business in foreign currencies all transactions will now be handled in lira. it's also another attempt of course to support the county which continue to tumble even after many to explore there is with dollars like the president had told them let's rope in craig our analyst in london along with our wisdom bowl correspondent dorian jones craig starting with you how much of a boost is that right rise giving the lira. it's give me a quote o

here's the peso also from friday and the turkish lira. some of that emerging markets written loss across the g.m.m. the argentines are very much in focus. we're going to hear from their president. he is on his way to washington. he's going to have a meeting with the i.m.f. guy, good morning. guy: we have confirmation of a story. in fact, it's been knocking around for a little while longer than that. w.p.p. confirming that mark red is going to be the new c.e.o. he's going to be taking over where they left off. he is known as an enabler. it will be interesting to see how they are circling. i expect they're about to be looking at that headquarters. i expect there are some changes underfoot at w.p.p., following martens' departure. let's talk about what we've seen overnight. the dollar holding on to its recent rally. investors assessing the outlook for trade whether turmoil and some emerging markets can be contained. u.s. markets are closed today. it is labor day. the americans are enjoying their day off. one person that is not enjoying a day

intervene while turkish regulators have also decided to ban all the real estate business in foreign currencies all transactions will be handled in the iraq and this is another attempt to support the lira which even after many turks bort with dollars continue to tumble. this man heeded the call of turkish president rich of thai of heir to one who wanted all turks to save the lira by purchasing the currency with dollars us one company install security technology surveillance cameras and alarm systems he does much of his business in dollars and that collected a lot of them. into the pool and i changed two hundred thirty thousand us dollars i changed all of my money. but it hasn't helped the lira much it's still tumbling rapidly things have become too expensive for us money how to his customers he's lost half his revenues but he doesn't plan on giving up instead he repeats the arguments from everyone's tirades. i think if the turkey is no longer the old and weak turkey the americans are attacking us but they can't hurt us with their sanctions we are unassailable the nation is united in that belief. yet seen you must doesn't believe any of that he belongs to the almost forty eight percent

whether turkish lira is going to gain valley or not but of course the minister try to give the message to the international markets that turkey is a safe haven't they can come and invest in turkey and the curious see crisis is totally over but of course time will show whether the turkish lira is going to gain back the confidence. the head of israel's air force is jew in moscow following the downing of a russian warplane in syrian airspace russia's defense ministry blames israel for the deaths of fifteen m. and on monday the israeli government has expressed regret its accuses syria of firing in that currently during an air raid targeting hezbollah weapons chalons has more from moscow. this israeli military delegation headed by the commander of the air force major general and macam norton has come to moscow essentially to argue israel's case following the downing of this russian plane and in addition to say to the russians that iran is continuing to attempts to transfer strategic weaponry to hezbollah and establish a military presence in syria now regarding the downing of the plane what

the six percent increase to twenty four percent cause an immediate rise in the value of the turkish lira against the u.s. dollar the central bank says it will keep interest rates high until inflation starts to ease the bank's decision came hours after mr one blamed high inflation on the central bank's mistakes. four hundred laser guided bombs are on their way from spain to saudi arabia after the spanish government reversed its decision to cancel the order the cancellation of the deal last week led to concerns about spanish job . and the future of the two billion dollar contract with saudi warships the u.-turn is angering control activists they say the bombs will kill civilians in the saudi led war in yemen take gould is from friends committee on national legislation she says a stronger message needs to be sent to all the countries which is continuing to supply arms to saddam. it's truly a shameful decision we're seeing with this reversal that spain instead of sending a red light to and mass slaughter in yemen that spain is changing that to a green light to green lighting the continued in

with the turkish lira, there is an understanding that argentina will return to global markets.eans moving with global trends. , thee same time discrepancy and distortions that remain in argentina with high public spending and runaway inflation have remained. people understand it is a mix of both. certainly, they will look to the to see how much growth it continues to have it. caroline: we thank you. let's stick with emerging markets for now. let's turn to turkey. the central bank signaled higher rate after inflation rose more than forecasted in august. bloomberg opinion columnist joins us now. high, andis painfully finally the central bank talks tough but markets are not buying it. is hardly a great thing to do to put export taxes. whichtoo little, too late is the story in the emerging markets. turkey, they are talking about raising rates at the next central bank meeting. that theyated today have done rate hikes before and this is a crisis. we have seen prices jumping 6.6% on the month to over 32% on the year rate. ppi and now it is 32%. it is extraordinary the level of inflati

turkish lira is at 6.70%. about..m., rick reader will join them with blackrock to get you adjusted and adapted for september. back to school. this is bloomberg. ♪ >> this is bloomberg surveillance. let's get the bloomberg business flash. china is considering a merger for the biggest carriers. bloomberg has learned there is a proposal to merge unicom and telecom. both companies are state-owned. china is in a state -- is in a race with the u.s. for five g technology. the largest advertising company named a new ceo. forecasts the profit margin squeeze for the full year but boosted its revenue outlook. the netherlands-based bank ing will settle a dutch investigation into money laundering and corrupt practices. the bank technologist what it calls serious shortcomings. that is your bloomberg business flash. tom: it is a sunrise over washington. a beautiful september morning. much going on. the brett kavanaugh testimony going on. kevin cirilli joins us. our chief washington correspondent. abruptly canceled his schedule yest

the turkish lira has surged after a decision by the central bank to raise the interest rate by more than six percent so his financial sardi's met today in a last ditch effort to halt the liras dramatic descent or at least slow it a concious value has plunged more than forty percent against the dollar this year analysts that argued for a drastic interest rate hike to keep prices from further skyrocketing but turkish president recha tie a better one had opposed such a move claiming high interest rates would worsen the country's economic problems turkish regulators have also decided to ban all real estate business in foreign currencies all transactions will now be handled in lira it's also another attempt of course to support the county which continue to tumble even after many to explore there is with dollars like the president had told them to let's rope in craig our analyst in london along with our wisdom bill correspondent dorian jones craig starting with you how much of a boost is that right rise given the lira. it's give me quite a boost so far i think for two reasons firstly is that t

cash there and that's not just affecting argentina the russian ruble the south african rand the turkish lira and the brazilian re are are all falling against the dollar political conflicts in those countries are making things worse argentina may have further to fall protests against the government are growing and the nation's biggest union the c g t says it has a strike planned to. german industry fears the racism and xenophobia being expressed in the current wave of anti migration protests in the eastern german city of kennett's could deter foreign applicants from seeking work in germany leading economists agree that foreign professionals will only consider coming to germany if it remains an open and tolerant society. that protests could undercut efforts by firms and service providers like berlin shout a hospital to attract skilled foreign staff. in albania and. he was unemployed along with twenty thousand other nurses but here at the shop each day he found a job only applicants with good german skills were considered for it otherwise the paperwork would have been too difficult. or how i'll

be talking business president out of one is in a very difficult spot back home right now at the turkish lira plummeted by some forty percent until his central bank which appears to be independent and now of raised interest that he needs support he needs a german businesses to be encouraged by the german chancellor to stick with turkey to reinvest in turkey and to back him up really and at the same time the german chancellor has needed him for a long time turkey deal migration stands strong and stood strong also throughout those very difficult patches over the past two and a half years or so which at one point president out of one accuse on going to of using nazi methods but the german chancellor is known for dealing rather well with autocrats but also with the strong men of international politics and we would expect them to have a rather frank exchange on the issues that are on the table that ok there's always already been picked up in the protocol that we're seeing today the. american i don't want to give a press conference after this working launch but there's already been some controversy

partially because of the currencies that are moving including the turkish lira which is weakening todayding a lot of ground. the ruble is down. the two-year yield i want to point that out because it is rising. it is now at 2.78%. let's have a quick look at the macro movers. crude finishing out around $69. primarilyis stronger because of the central bank action of the 25 basis point increase. you can see the other commodities are losing ground again as well as gold and copper which is down 4/10 of 1%. this is eyeing the hurricane in the u.s.. there is still no word on trade. will we get the tariffs on china? that the next week? too many questions. lehman, thereter have been drastic changes. the former co-ceo of deutsche bank spoke to us. first thing i would point to is the fact that banking today is dominated. that perhaps is an unintended consequence when you set the men minimum standards of capital that high, what wound up happening is that a few firms have tended to dominate wholesale banking. almost all of them american. those are the two things i would say are different today versus

they turkish lira is still the worst performer on a one-day basis, down 2.1%. what other countries are you in terms ofmarcus, a political crisis or something that might happen soon? down 9/10 of 1% today, is that because of tariffs? marcus: it could be, but there are problems in the stock market as well. i do not think tariffs are the big story.they are moving markets. individual problems in turkey, as i outlined, particularly one bank. whether its board members and shareholders get nationalized effectively. with the rest of the emerging markets are fairly calm. the most important thing to pay attention to is the two-year treasury yield. that is inching ever higher, close to 2.8 now. 2.78, wherever it may be. that will put pressure at some point on higher yields. the fed moving to high grades more consistent basis. that will put pressure on the dollar at some point and will affect emerging markets. julie: you mentioned in your first response, i believe, what is going on in south africa. do you think they take a page from russia and raise rates? the think that i

the turkish lira has been dental doesn't lighting lighting to start start here here. battered i'd. you as well here right right girl it was your dollar dollar cost. after that exam rate hike it jump jump by five star sent. but it. won't be enough and that's also all all. with economic growth -- node and we and we are here on the mountain today that help foreign born crazies has a has. a reddit reddit hotel. texas had my job dictated intellectually should be just under. two for service our target once we seven seven year here. i can i can expansion shinseito number attention to full. service and the real real run on your way. okay [inaudible] since. at the same time asians als. check it out -- for their test all right right right right it's that it's a i've sent. you know jobs in the service of when i got hot house. each after hundreds all fro. one about percent is today's date. they'll bring bring bigger bigger. sense i functions. this. world is more marking. a lot. of other officers on september fifteenth two thousand and what was. florida's largest bank bank declared clank crises

that absolutely needed a president out of one to keep that migration crisis at bay but with the turkish lira having lost forty percent of its value since the beginning of this year there is no i level that he's calling for in an article in a major newspaper today right now and he wants to get some kind of support out of germany from the german chancellor and from german industry but just that but they do have a history so let's just have a quick look at. this handshake is nothing more than a photo op to politicians who are unlikely to become friends turkish president air to one loves pomp and circumstance and he's considered quick tempered. america on the other hand is said to be a serious humble politician who loves harmony. as it is. it's a relationship that's certainly not based on great personal friendship but more on the knowledge that the political relations of the two countries are very important and must be maintained it's certainly not a marriage of love. and not in the spring of two thousand and seventeen relations were at a low point the german government refused to allow air to o